Emefiele: A central bank governor in the politician’s image

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President Muhammadu Buhari got his undeserved, unmerited second term. In tow, Godwin Emefiele, central bank governor, got his too! Both failed woefully in the management of the economy in their first terms and would not have qualified for a second term in meritocratic climes. But Nigerians rewarded Buhari’s poor first-term performance with a re-election; in turn, Buhari rewarded Emefiele’s first-term underachievement by reappointing him for another term of five years.

Of course, Buhari reappointed Emefiele because he pursued, almost without reservation, the president’s statist and illiberal economic agenda, including: propping up favoured sectors, notably agriculture and manufacturing, with billions of naira; protecting these sectors from international competition through high tariffs, exchange control and outright import bans; feeding Buhari’s deficit-financing by extending massive overdrafts to his government; and, of course, like Buhari, not wanting to “kill the naira”; so, instead of liberalising the foreign exchange market and allow the naira to adjust to its true market-determined level, he is operating different foreign exchange windows that foster different exchange rates, which distort the economy and discourage foreign investors.

Surely, if the consensus is, as it is, that President Buhari failed economically in his first term – and the evidence of appalling performances across all economic indicators proves this – then Emefiele cannot insulate himself from that failure because he was the enthusiastic driver of all the policies behind it. Indeed, he has led the central bank like the omniscient head of Gosplan, the state committee that ran the Soviet Union’s planned economy.

To be sure, Emefiele is the most powerful central bank governor in Nigeria’s recent history. Over the past four years, he has been the central bank governor, the de facto finance minister and the de facto coordinating minister of the economy, all rolled into one! When … Read More...

Emefiele clears air on multiple exchange rates

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Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, on Friday responded to the lingering question about multiple exchange rates, saying, “Nigeria does not operate multiple exchange rates but multiple foreign exchange windows.” The Nigeria’s foreign exchange windows include the investors and exporters forex window, the inter-bank window, the official, the window for Small…

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Emefiele clears air on multiple exchange rates

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Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), on Friday responded to the lingering question about multiple exchange rates, saying Nigeria does not operate multiple exchanges rate but has multiple foreign exchange windows.

The Nigeria’s foreign exchange windows include the investors and exporters forex window, the inter-bank window, the official, the window for Small and Medium Enterprises (SMEs), business travel allowance (BTA) and Personal travel allowance (PTA).

Emefiele said the foreign exchange has substantially converged at N360 per dollar at the NAFEX window and Bureau De Change (BDC) segment of the market.

He gave the explanation while delivering a lecture on “Up against the Tide: Nigeria’s Heterodox Monetary Policy and the Breton Woods Consensus,” at the University of Ibadan.

The Apex bank governor said the CBN’s unconventional methods (especially in the management of the FX market and our development financing) supported by the orthodox approaches (in the form of our timely adjustments of monetary policy rate) have been able to optimally balance the delicate objectives of price stability and real output growth.

Details late…

 

Hope Moses-Ashike

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Emefiele assures proactive approach against external pressures on the economy

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Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has again assured that the apex bank will continue to take a proactive approach in easing any likely adverse effects on the economy from external pressures as he prepares for a second term as the head of the apex bank in June 2019.

Emefiele particularly promised that the apex Bank will promote policies that will enhance domestic production of goods that can be produced in Nigeria along with measures that improve the stability of the financial system.

Delivering the third in the university’s series of Eminent Persons’ Lecture at the University of Benin, Emefiele stressed the need for increased coordination between fiscal and monetary policies in deploying measures that will support economic growth and reduce unemployment.

At the event held on Wednesday, Emefiele passionately preached the message of economic patriotism, where he urged actors in the public and private sectors to look inwards in developing the Nigerian economy.

The governor urged Nigerians to think of what they can do to improve the fortunes of the Nigerian economy, rather than what they stand to benefit from the ailing system.

In his lecture titled: “Beyond the Global Financial Crisis: Monetary Policy under Global Uncertainty”, Emefiele noted that there was much potential within the Nigerian economy to developed it as many other countries, which were its peers at independence but had gone ahead.

 He said the lecture was part of the Bank’s efforts at promoting research and collaboration with Universities, towards developing policies and programmes that will enhance the economic well-being of all Nigerians, as he highlighted how the crisis had helped to reshape monetary policy tools used by Central Banks to address dips in their economies.

Giving an overview of how central banks across different economic blocs

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